Letting house go in MICH> LAWS who knows????

moneypit said:
IIRC michigan has a law on the books or used to that said they cant
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I sure would like to know the answer to this. I am trying to negotiate a short sale with GMAC right now. They own the primary and secondary. I am willing to take some of the hit on it, but I can't afford to take the whole thing. This would sure give me some leverage. Nobody has ever given me a straight answer. Walking away is the 500 lb gorilla in the room. I haven't brough it up, and neither have they.

-Geoff
 
I understand that people want to stay in their homes, but an agreement is an agreement. This is what ends up pissing me off. If you agree to something and can't do it, then it's your fault. Granted, you didn't see the complete collapse of the Detroit area in the cards, but it happened. You tried to negotiate a means to pay with the bank and it didn't work either. Don't get pissed, don't point fingers. Ultimately, the bank took a risk on you and it failed. They aren't exactly going to be making a ton of money off of your failings. All the blame lies with you.
 
6 years statute of limitations on a contract. (there are exceptions)

I'd say Moneypit's comments are the closest to accurate thus far.
 
OK anyone know people who have been saught after for the deficiancy...or got a lawyer and negotiated a release of responsibility?
 
[QUOTE/]The purchaser of a property in Michigan is responsible for the deficiency judgment if the court orders him to do so. The judgment is filed only after the sale because the lender doesn't know exactly what the bidding amount will be.

Most probably the statute of limitation, that is the period up to which the lender can file the deficiency judgment is 4 years in Michigan. The statute varies from one state to another.

Now, if the lender cancels the deficiency as a result of negotiation, then you may be sent a 1099-c form just to keep in writing that the debt has been canceled. But this does not mean you'll have to pay tax[/QUOTE]
 
1. if the lender forecloses, yes they can sue you for the deficiency.
2. If the lender allows you to do a short sale, yes they can sue you for the deficiency or 1099 you so you have to pay taxes on it as income.
3. the amount of deficiency is not determined until the lender sells the home. the price paid at the sheriff sale does not determine deficiency, it is simply foreclosure on the property and the amount listed is the amount you must come up with before the redemption period expires.
4. Trott and Trott does not add money to the costs. They are given the amount from the bank, including P&I, escrow shortages, foreclosure fees and expenses, late fees and everything else they can charge you under the terms of the mortgage.
5. A contract statute of limitation is 6 years in Michigan. But you have to know when it starts or resets and I don't feel like explaining it.
6. A Judgment can be renewed by the prevailing party every 10 years.
7. Not all people who have a foreclosure qualify for bankruptcy.
8. The Best way to get out of a house is a DEED IN LIEU... Google it.
 
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